LOUISIANA STATE BUDGET: TRUTH IN THE PLEASANT DISGUISE OF ILLUSION

"Yes, I have tricks in my pocket, I have things up my sleeve. But I am the opposite of a stage magician. He gives you illusion that has the appearance of truth. I give you truth in the pleasant disguise of illusion."

Tennessee Williams The Glass Menagerie

LOUISIANA STATE BUDGET: TRUTH IN THE PLEASANT DISGUISE OF ILLUSION

Deciphering state spending often involves discerning truth in the pleasant disguise of illusion. The state budget process involves a series of bills including the state appropriations or spending bill (HB1), the capital outlay bill (HB2), the bond authorization bill (HB3), the supplemental appropriations bill (HB 765) and expenditure limit bill (HCR 10), which provides for an increase in the constitutionally mandated expenditure limit. The expenditure limit (the "Cap")is a constitutionally mandated limit on the growth of government to avoid excess spending. HCR 10 seeks to increase the spending cap by $2 Billion and requires a 2/3's vote.

If you find the system confusing, you are not alone. The system was designed to be confusing to provide for maximum expenditures and minimum accountability and alleviate the need to be fiscally responsible. After the hurricanes, the legislature cut nearly $1 billion from the budget in anticipation of a budget shortfall. I didn't see any blood on the floor or public outcry over the decrease in state spending. Now that the state is awash in cash, the cuts have been quickly restored and new spending initiated. All the recurring expenditures have been placed in HB 1, and the nonrecurring programs placed in the supplemental appropriations bill which is contingent upon breaking the spending cap.

Below are a series of truth and illusions on state spending:

THE ILLUSION: We are in a period of economic prosperity, and we need new programs for our citizens.THE TRUTH: Nearly $1 billion of the increase is directed towards recurring expenditures.
It is based on the illusion that the economic bubble that we are in will last forever, that we will not have to pay the piper and that any problems that are created by the excess spending will be the born by the next administration and the legislature. The natural political instinct among many is to spend ALL of the budget because it is THERE and we CAN.

THE ILLUSION: Those who seek to block the excess spending are contrarians and obstructionists who are blocking Louisiana's progress. THE TRUTH: The overwhelming majority of Louisiana citizens do not support spending all of the budget and would prefer greater tax cuts and less recurring expenditure. With Louisiana's government the 4th largest in spending per capita, we simply don't need to bust the budget.

THE ILLUSION: If the legislature refuses to break the budget cap, all of the meaningful appropriations in the supplemental budget, such as Road Home, highways and other capital expenditures will be lost. THE TRUTH: There is adequate funds for the state to responsibly handle all of its needs.